Kilburn leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Kilburn residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Kilburn you would be well advised to see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Kilburn leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful correspondence with the landlord of her garden apartment in Kilburn, Katie initiated the lease extension process just as the lease was approaching the critical 80-year deadline. The lease extension was concluded in February 2012. The landlord’s fees were restricted to below 450 pounds.
Mr Mason Davis moved into a garden flat in Kilburn in June 2010. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Kilburn with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced annually. The lease finished on 9 September 2092. Having 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 plus fees.
An example of a Freehold Enfranchisement decision for a Kilburn residence is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case affected 2 flats. The remaining number of years on the lease was 70.02 years.